August 2025 | Property Market Review
Initially, it appeared that sales activity was increasing; in early August, HMRC reported that sales rose by +17% in June, supported by growth in real incomes and improving affordability. Rightmove’s latest data indicated the same trend: it said that the number of homes for sale was up +10% against August 2024. However, data from RICS suggested a slight decline in market sentiment, implying perhaps that the market will see a gradual return to more familiar annual patterns.
Looking at capital values, growth has tended to be strongest in areas of greater affordability. Northern markets have continued to lead the field, and on the measure of rents, affordability again appears to have been the decisive factor: price-growth has been strongest in Northern Ireland, Wales, the North West and the North East.
With CPI inflation now at 3.8%, fewer regions have been producing real-terms growth in capital values but rental yields have stayed comfortably ahead of the cost of living. By that measure, residential property is continuing to deliver worthwhile returns for the great majority of investors
Darren Bennett
Managing Director
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